All-Ordinaries Stock Index

AAA

DEFINITION of 'All-Ordinaries Stock Index'

A stock index comprised of common shares from the Australian Stock Exchange. The All-Ordinaries Index is the most quoted benchmark for Australian equities. The ASX is responsible for calculating and distributing the index and its returns.

INVESTOPEDIA EXPLAINS 'All-Ordinaries Stock Index'

The All-Ordinaries Index is market weighted and includes over 300 companies. For a company to be included in the index, they must meet the requirements established by the ASX. For example, a stock must have a market value of over 0.2% of all equities listed on the exchange. Furthermore, the stock must be liquid, with a monthly turnover of 0.5% of its total outstanding shares. The ASX rebalances the index each month, ensuring companies still meet these requirements.

RELATED TERMS
  1. Kangaroos

    Slang term for Australian stocks, it refers mostly to the stocks ...
  2. Index

    A statistical measure of change in an economy or a securities ...
  3. Australian Stock Exchange - ASX

    The stock exchange headquartered in Sydney, Australia. The Australian ...
  4. Aussie

    Slang term that is used to refer to the Australian dollar.
  5. AUD

    In the currency market, this is the abbreviation for the Australian ...
  6. Dividend

    A distribution of a portion of a company's earnings, decided ...
Related Articles
  1. Economics

    The ABCs Of Stock Indexes

    Indexes can track market trends, but they're not always reliable. Can you trust them?
  2. Trading Strategies

    Market Strength Tutorial

    Here you can learn about some of the indicators that traders and brokers use to determine the direction and strength of the market's present trend.
  3. Mutual Funds & ETFs

    Index Investing

    Get to know the most important market indices and the pros and cons of investing in them.
  4. Investing Basics

    Explaining Market Value of Equity

    Market value of equity is the total value of all the outstanding stock as measured in the stock market at a particular time.
  5. Investing Basics

    What is Spread?

    Spread has several slightly different meanings depending on the context. Generally, spread refers to the difference between two comparable measures.
  6. Economics

    What is the Breakeven Point?

    In general, when gains or revenue earned equals the money spent to earn the gains or revenue, you’ve hit the breakeven point.
  7. Stock Analysis

    What is the Price-to-Sales Ratio?

    The price-to-sales ratio is an indicator of the value placed on each dollar of a company’s sales or revenues.
  8. Mutual Funds & ETFs

    Which ETF is the Best Bet: VTI or IWV?

    A look at two quality ETFs that offer diversification, low expense ratios, and exposure to the total market.
  9. Investing Basics

    What is Treasury Stock?

    Treasury stock is a company’s own stock that it holds in its treasury for later use.
  10. Investing Basics

    What is a Mid-Cap?

    Mid-cap companies are those with a market capitalization between two and $10 billion.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center